Facing staunch community opposition, a Sonoma County Indian tribe has dropped its plans to build a casino near Oakland International Airport, city leaders announced Friday in heralding their victory over urban gaming.

"Oakland is not for sale," City Council President Ignacio De La Fuente said, adding the casino proposal "is done, it's over, it's dead."

Leaders of the Lower Lake Rancheria-Koi Nation declined to comment, but Oakland officials released a letter from developer Legacy Partners -- which owns the 35-acre site adjacent to the Martin Luther Jr. Regional Shoreline Park -- saying the tribe is no longer seeking the land.

The Foster City firm said it plans to develop the site, a parking lot adjacent to the wildlife refuge Arrowhead Marsh, for industrial use.

Oakland officials said their opposition to the casino plan, and that of city councils in Alameda and San Leandro, the Alameda County Board of Supervisors and the East Bay Regional Parks District, forced the Santa Rosa tribe to abandon efforts to have the land placed in federal trust, essentially creating a reservation where it could have opened a 230,000-square-foot hotel and casino.

Koi Nation Chairman Daniel Beltran did not return calls for comment. Reached by phone at his Santa Rosa home, his brother, tribal secretary- treasurer Dino Beltran, said he was too busy to speak to a reporter.

"This is an amazing victory, a victory of what happens when cities work together," said Oakland City Councilwoman Jane Brunner.

The tribe had offered Oakland $25 million a year, plus an additional $5 million a year for community organizations, a deal the council rejected in January. But the federal government would have had final say over the proposal.

Local officials cited concerns about the impact of easy-access gambling on low-income residents and senior citizens, increased traffic and crime, and the environmental effects on Arrowhead Marsh, a nesting ground for several endangered bird species.

"I think we proved the power of one voice," said San Leandro Mayor Sheila Young. "I also think it sends a message to other tribes that if they want to find properties to build casinos, it should not be in areas populated by large numbers of people and certainly not in congested areas."

The tribe also may have been influenced by Gov. Arnold Schwarzenegger's declaration last month that he would oppose any urban casino, with the exception of Casino San Pablo, which already has been placed in federal trust for the Lytton Band of Pomo Indians. Having failed to win support of the state Legislature, that tribe has scaled back its plans and said it is no longer seeking to add slot machines to its existing cardroom off Interstate 80.

But other plans for Bay Area casinos remain in the works, including proposals by two tribes for different sites in Richmond.

The Oakland council's only casino supporter, Larry Reid, whose district includes the site, said he was disappointed the plan fell through. He said he now hopes the site can be developed for retail, perhaps as an outlet mall.

"We have some of the most overtaxed residents in this state and nation," Reid said, adding that Oakland is facing a $31 million budget deficit and could lay off 167 employees. "The casino was another option, of thinking outside the box, that could have given us $30 million a year for 20 years."